(Adds "units of" in fourth paragraph)
* BSE aiming IPO in H1 2013, picks 14 banks to manage sale
* BofA Merrill, JPMorgan, Barclays, UBS among lead managers
* Seeks valuation of about $1 billion-CEO
By Indulal PM
MUMBAI, Dec 6 India's BSE Ltd, the former Bombay
Stock Exchange which has lost market share to rivals, has chosen
14 banks for a share offering planned for the first half of
2013, its chief executive said.
The company, which operates Asia's oldest stock exchange, is
seeking an initial public share offering or IPO that would value
it at about $1 billion, Ashishkumar Chauhan told Reuters on
A stock market flotation by BSE would join a list of IPOs by
Indian companies and could deliver a windfall for its owners
including local brokerages, as well as potentially raising funds
to help it take on faster growing competitors such as the
National Stock Exchange (NSE).
Bank of America Merrill Lynch, JPMorgan,
Barclays, UBS and units of Indian banks Kotak
Mahindra Bank and ICICI Bank are among the
lead managers of the planned IPO, he said.
Founded in 1875, BSE has long considered an IPO. India's
capital markets regulator in April approved the listing of local
stock exchanges, subject to some conditions.
"The process is on. We are targeting a launch in the first
half of next year," Chauhan said on the sidelines of an event.
BSE says it is the world's No. 1 exchange in terms of listed
members, with about 5,000 companies. But rival NSE, founded in
1993, has eclipsed BSE in trade volumes.
On Thursday, for example, equity and derivatives turnover by
value on the NSE was more than five times that of the BSE.
"Success for the BSE IPO would be more emotional for broker
members of the exchange, but the fact is BSE is losing market
share to NSE," said Paras Adenwala, managing director and
principal portfolio manager at Capital Portfolio Advisors in
Frankfurt-based Deutsche Boerse and the Singapore
Exchange Ltd each own 5 percent of BSE, whose Sensex
index remains India's benchmark stock index alongside
the rival NSE's Nifty index.
Multi Commodity Exchange of India Ltd raised 6.6
billion rupees ($121 million) in an IPO earlier this year,
becoming the first Indian bourse to list.
BSE's total income rose 7 percent to 5.78 billion rupees in
the year through March from 5.38 billion in the previous year.
Net profit, however, fell nearly 12 percent to 2.05 billion.
By comparison, NSE had total income of 10.8 billion rupees
and net profit of 7.05 billion for the year through March.
Share sales by Indian companies in the first half of this
year were down 4 percent from a year earlier to $7.1 billion,
according to Thomson Reuters data, but the IPO market is poised
to end the year with a flourish.
Bharti Infratel, the tower arm of top mobile phone carrier
Bharti Airtel, is seeking to raise as much as $830
million in an IPO next week, while a handful of smaller IPOs are
also set to be launched.
Sources have said the Indian government is planning to
offload about $1.2 billion worth of shares in state-run miner
NMDC Ltd on Dec. 13.
($1 = 54.5750 Indian rupees)
(Additional reporting by Abhishek Vishnoi; Writing by Devidutta
Tripathy; Editing by Tony Munroe and David Holmes)